In the endogenous growth model presented in the text, suppose that u represents the fraction of time spent working (as opposed to accumulating human capital), b represents the efficiency of human capital accumulation, H represents the amount of human
capital, and z represents the marginal product of efficiency units of labor. Consumption equals A) buH.
B) zuH.
C) buz.
D) buzH.
B
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In the expanded circular flow diagram, the rest of the world interacts directly with
A) product markets. B) factor markets. C) households. D) firms.
If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment
A) will increase. B) will remain constant. C) will decrease. D) may increase or decrease.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.
In the above figure, what is the quantity of workers that would be hired by a monopsonist?
A) Q1 B) Q2 C) Q3 D) Q4